For those of you that have been opening your statements; you
have been realizing we had a pretty good year.
Investments are up, and the trend continues. Although we remain cautious, here are five
signs that investors are starting to feel better and moving back into stocks:
Trading is up
Daily trades at TD Ameritrade have averaged 370,000 in
January – up from 331,000 in December, according to TD Ameritrade.
Portfolios have been repaired
The Wilshire 5000, the broadest measure of the U.S. stock
market, crossed over its all-time high close to 15,806.69, meaning that the
nearly $11 trillion in stock market wealth lost in the bear market has now been
restored.
Money is flowing to stock funds again
Net inflows to U.S. stock funds totaling $11.3 billion in
the two weeks ending January 16th were the best two weeks since
April 2000, according to Lipper.
Optimism is rising
A bullishness reading of 52.3% the week ending Jan. 23rd was
the highest in two years, says American Association of Individual Investors. (Bullishness = belief that the market will go
up).
Nervousness is down
The VIX, also known as the “fear gauge” on Wall Street, recently
hit its lowest level since April 2007.
Most people don’t realize the stock market will recover
approximately six to nine months ahead of the economy. If you are sitting on the sidelines wondering
if it is time to get back in; give me a call.
We can discuss your individual situation and determine the best time and
strategy for you to re-enter the stock market.
Have a great weekend,
Tracey
Source: Robert
Ahrens, Jeff Dionise and Kris Kinkade, USA Today Research, David L. Fingold
Blog, Dynamic Funds
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